A tax on vehicles of 1 800 kg and more in Europe? Who would be concerned? (1/2)
- In France, in the week of November 16, a law was adopted by the National Assembly on a tax related to the mass of passenger cars. From January 1, 2022, any new passenger car registered in France, whose “mass in running order” is greater than 1,800 kg will be subject to a tax of 10 Euros per additional kilogram.
- The “mass in running order” adopted is defined by the EU Regulation N° 1230/2012 and takes into account the mass of the vehicle whose fuel tank(s) are filled to at least 90% of their capacities, the mass of the driver (75 kg) and fitted with standard equipment in accordance with the carmaker’s specifications.
- Vehicles with an all-electric range in town over 50 kilometres, meaning now battery electric vehicles, as well as plug-in hybrids are not affected by this measure. Reductions are also provided, in particular for households with at least three children or when the vehicle, acquired by a company or a legal person, has at least eight seats.
- Thus defined, Inovevanalyzed for France, which vehicles would be under this law and consequently their sales and production volumes. Therefore it appears that 3% of thermal and non plug-in hybrid passenger cars sold in France would be covered by this law (based on 2019 sales of passenger cars in France), i.e. a market of around 70,000 units. This is a maximum envelope, not taking into account the specificity of the vehicles (5 or 7 seats), nor the characteristics of the buyers (household of 5 or not). The majority of these vehicles are sold by Mercedes, Volvo and Audi.
- On the production side, this law does not impact the automotive industry located in France, as a maximum of 1% of vehicles weighing over 1 800 kg (or +1 725 kg without the driver's mass) are assembled in French plants. These are essentially light utility vehicles such as Renault Trafic or Peugeot Expert, produced in passenger transport versions. And among these vehicles, a large part is acquired by companies, therefore not subject to the law. In other words, the mass tax does not impact the French automobile industry.
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